Account Based Pensions
Pension Strategies

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Conservative

Objective

To achieve, on a rolling three year basis, a rate of return in excess of the median of our relevant peers, as measured by the relevant Conservative Growth Performance Universe and to maximise the after tax rate of return above inflation, as measured by CPI, over rolling three year periods subject to the following constraints:

  • Expecting to earn a positive rate of return over most 12 month periods; and
  • Maintaining sufficient liquidity to enable the Fund to meet its commitments.

Based on past performance of investment markets, in the long term, the Conservative option aims to achieve:

  • Over rolling three year periods, a rate of return after tax and fees, in excess of CPI + 1.5%, with
  • a 1 in 7 chance of experiencing a negative annual return over the next three years.

Comparison relative to other options

The Conservative option is expected to provide lower long-term investment returns and fewer fluctuations from year to year than the All Growth or Balanced options. You can generally expect to earn a positive rate of return over one year periods, as is consistent with a portfolio invested mostly in bonds with only a small proportion of shares. It is still possible however that your superannuation can reduce in value in any given year or years, but this is less likely than with the All Growth or Balanced options.

Suitability (risk tolerance)

Generally an investor in this type of option is likely to be looking for fairly stable returns over the medium to long term. They know long term investment returns are likely to be lower than the higher risk options of All Growth and Balanced but they also know there is less chance of reducing the value of their benefit in the short term.

Historically, this type of option has occasionally produced negative returns. However, past performance is not an indication of future performance and therefore future investment returns may differ from past investment returns and may be positive or negative.

Important Note: There is no guarantee that this option will meet its objective or that the value of your superannuation will not decrease as a result of negative returns.

Want to find out how the fund performed over the last 12 months? View Investment Returns »

Where money is invested

The Conservative option aims to hold 32% in shares and 68% in income assets such as bonds and cash. The intended mix of investments are shown below. From time to time, the Trustee may adjust the mix within the ranges shown as investment conditions change.



Asset mix range

Asset Mix Range

Range %

Equity - Australia 12 - 16
Equity - International 16 - 20
Total Growth Assets 30 - 34
Fixed Income - Australia 21 - 25
Fixed Income - International 16 - 20
Cash - Australia 25 - 29
Total Income Assets 66 - 70

My Super News

The VISSF app has landed

09-Sep-2016

We want to help you get the most out of your super, so we've developed an app that connects you to your super whenever you want, wherever you are. Read More

You’re not alone

09-Sep-2016

Making choices about your financial future can be a complicated process. Sometimes it can seem like a course of study is required just to understand your basic options. Read More

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